“The same thing that's destroying all of the websites that they relied on to build their advertising business is coming around to eat their own tail.”
The WAN Show · October 2026
Context
Luke had just explained that Google's AI-mode queries earn less than normal searches and cost more to run, which spooked investors in Alphabet's quarterly results. Linus points out the irony: AI is now cutting into the ad business Google built on the open web.
Transcript
sense. So the same thing. They would make less money
and cost more money.
So the same thing that's destroying all of the websites that they relied on to build their advertising business is coming around to eat their own tail. Sorry, am I smiling?
No, it's just a brace cramp. Yeah. That's so funny. That is pretty funny. Google said on the call that they were going to fix this by adding what they call multi-turn ads that adapt as you go back and forth with the AI. It's unclear what exactly, or sorry, it's unclear exactly how this will make…
Google's just making that official? I'm assuming. That's crazy. I'm
assuming. I'm trying to figure out what that would be. And I'm assuming they're just taking that same type of thing. Anyways, we'll have to wait and see what that actually is. They also reported a $51.4 billion spend on data centers and chips, which was more than double the same period last year.…
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